That depends greatly on the numbers in the deal. Trying to get $15K on a ARV property of $100K with a purchase of $80K wouldn't work. But $15K on a $200K property for $125K might.
To answer this question, you need to know the following:
* For THAT neighborhood, what do houses comp at? This can help you determine ARV=after repair value, assuming it is a fixer
* How much work needs to be done? $10k? $30k? Be LIBERAL in your estimate, high ball it
* What is standard closing fees, and realtor fees in your area?
Add all these costs up, and subtract from the ARV. That will equal profit, less holding costs, such as interest only payments on a hard money loan.
Once you see this profit pool, you will know if $15k is too much, it usually is.
That depends greatly on the numbers in the deal. Trying to get $15K on a ARV property of $100K with a purchase of $80K wouldn't work. But $15K on a $200K property for $125K might.
Roger
To answer this question, you need to know the following:
* For THAT neighborhood, what do houses comp at? This can help you determine ARV=after repair value, assuming it is a fixer
* How much work needs to be done? $10k? $30k? Be LIBERAL in your estimate, high ball it
* What is standard closing fees, and realtor fees in your area?
Add all these costs up, and subtract from the ARV. That will equal profit, less holding costs, such as interest only payments on a hard money loan.
Once you see this profit pool, you will know if $15k is too much, it usually is.
Sorry folks here are the details:
FMV: $295K
PAYOFF: $186K
Repairs: less than $1K
tHANKS, Tim